Philippines budget deficit shoots up

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The Philippines' budget deficit soared in May, the government said on Tuesday, but a senior economic official insisted there was still room to pursue higher spending to sustain economic growth.

The government spent 19.90 billion pesos ($468.31 million) more than it earned in May, Finance Secretary Cesar Purisima said in a statement.

He insisted the deficit was manageable, expressing confidence the full-year fund shortfall would stay within 2.6 percent of the gross domestic product (GDP), or 279 billion pesos.

"We are pleased with the continued rise in revenue collections, especially since this allows us to pursue our spending programme for the year while making sure that our fiscal position remains under control," Purisima said.

"The wide fiscal space will now give us an advantage to finance infrastructure projects and social programmes that shall in the long term curb poverty and promote equality."